Introducing a financial transaction tax across the European Union would wipe out or displace up to 90 per cent of derivatives transactions and hit the bloc’s economic output by almost 1.8 per cent over the long term, according to an official impact assessment.
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Update: “Trade groups hit EU’s ‘misguided’ transaction tax” has some early response, including this:
Julie Patterson, director of authorised funds and tax at the Investment Management Association, warned that such a tax would “penalize ordinary long-term savers” and would drive institutional fund managers out of Europe.
She said: “Ordinary European investors will get hit, while the very high net worth individuals and institutional funds will just move their business outside of Europe.
“The tax would happen at every level. It isn’t just the investment banks selling something and the fund or individual buying it. It’s on every party in the chain.”
(FT) Tax plan raises fears for Europe business
Introducing a financial transaction tax across the European Union would wipe out or displace up to 90 per cent of derivatives transactions and hit the bloc’s economic output by almost 1.8 per cent over the long term, according to an official impact assessment.
Read it all (requires subscription).
Update: “Trade groups hit EU’s ‘misguided’ transaction tax” has some early response, including this: